Correlation Between UNIQA Insurance and MT Bank
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and MT Bank at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining UNIQA Insurance and MT Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UNIQA Insurance Group and MT Bank Corp, you can compare the effects of market volatilities on UNIQA Insurance and MT Bank and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in UNIQA Insurance with a short position of MT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and MT Bank.
Diversification Opportunities for UNIQA Insurance and MT Bank
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UNIQA and 0JW2 is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and MT Bank Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MT Bank Corp and UNIQA Insurance is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on UNIQA Insurance Group are associated (or correlated) with MT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MT Bank Corp has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and MT Bank go up and down completely randomly.
Pair Corralation between UNIQA Insurance and MT Bank
Assuming the 90 days trading horizon UNIQA Insurance is expected to generate 136.79 times less return on investment than MT Bank. But when comparing it to its historical volatility, UNIQA Insurance Group is 2.58 times less risky than MT Bank. It trades about 0.0 of its potential returns per unit of risk. MT Bank Corp is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 19,561 in MT Bank Corp on September 1, 2024 and sell it today you would earn a total of 2,438 from holding MT Bank Corp or generate 12.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
UNIQA Insurance Group vs. MT Bank Corp
Performance |
| Timeline |
| UNIQA Insurance Group |
| MT Bank Corp |
UNIQA Insurance and MT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and MT Bank
The main advantage of trading using opposite UNIQA Insurance and MT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, MT Bank can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in MT Bank will offset losses from the drop in MT Bank's long position.| UNIQA Insurance vs. Uniper SE | UNIQA Insurance vs. Mulberry Group PLC | UNIQA Insurance vs. London Security Plc | UNIQA Insurance vs. Triad Group PLC |
| MT Bank vs. McEwen Mining | MT Bank vs. iShares Physical Silver | MT Bank vs. Beowulf Mining | MT Bank vs. Blackrock World Mining |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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